WGU D215 Auditing Exam Questions and Verified Answers A+ Grade
2026/2027 | Complete Auditing Study Guide
Ability of cash flow from operations to cover current debt and dividends - (ANSWER)Measures ability to
cover current debt maturities and dividends with operating cash flow.
Accounting estimate - (ANSWER)An approximation of a monetary amount when a precise means of
measurement is not available.
Accounting records - (ANSWER)Client's records of the initial accounting entry and supporting
documents.
Acid-test (quick) ratio - (ANSWER)Measures ability to meet short-term obligations with liquid assets such
as cash, short-term investments, and receivables.
Advance shipping notice (ASN) - (ANSWER)An electronic acknowledgement of a transaction by a supplier
indicating goods shipped, prices, and other information such as freight costs or taxes.
Adverse interest threat - (ANSWER)The threat that a CPA will not act with objectivity because the CPA's
interests are opposed to the client's interests.
Adverse opinion - (ANSWER)Auditors state the financial statements are not fairly presented due to a
pervasively material departure from the applicable financial reporting framework.
Advocacy threat - (ANSWER)The threat that a CPA will promote a client's interests or position to the
point that his or her objectivity or independence is compromised.
Allowance for sampling risk (ASR) - (ANSWER)A measure of the uncertainty associated with not sampling
the entire population.
Analytical procedures - (ANSWER)Evaluations of financial information through analysis of plausible
relationships among both financial and nonfinancial data; analytical procedures also encompass such
,WGU D215 Auditing Exam Questions and Verified Answers A+ Grade
2026/2027 | Complete Auditing Study Guide
investigation, as is necessary, of identified fluctuations or relationships that are inconsistent with other
relevant information or that differ from expected values by a significant amount.
Appropriate - (ANSWER)Refers to the quality of audit evidence gathered.
Assertions - (ANSWER)Statements or representations, explicit or implied, made by management
regarding the recognition, measurement, presentation, and disclosure of items included in the financial
statements.
Assurance services - (ANSWER)Independent professional services that improve the quality of
information, or its context, for decision makers.
Attestation services - (ANSWER)Services performed when an independent practitioner, or CPA, is
engaged to issue a report on subject matter that is the responsibility of another party.
Attribute sampling - (ANSWER)A sampling technique used to reach a conclusion about a population in
terms of a rate (frequency) of occurrence.
Audit committee - (ANSWER)A committee of the board of directors responsible for oversight of internal
controls, financial reporting and disclosure in the financial statements, regulatory compliance, and the
company's independent auditors.
Audit data analytics (ADA) - (ANSWER)The science and art of discovering and analyzing patterns,
identifying anomalies, and extracting other useful information in data underlying or related to the
subject matter of an audit through analysis, modeling, and visualization for planning and performing the
audit.
Audit evidence - (ANSWER)Information gathered by the auditor that is used when forming an opinion on
the fair presentation of a client's financial statements.
, WGU D215 Auditing Exam Questions and Verified Answers A+ Grade
2026/2027 | Complete Auditing Study Guide
Audit program - (ANSWER)A listing of details of the audit procedures to be used when testing controls,
conducting detailed substantive audit procedures, and completing the audit.
Audit risk - (ANSWER)The risk that an auditor expresses an inappropriate audit opinion when the
financial statements are materially misstated.
Audit sampling - (ANSWER)The selection and evaluation of less than 100% of the population of audit
relevance such that the auditor expects the items selected (the sample) to be representative of the
population and, thus, likely to provide a reasonable basis for conclusions about the population.
Audit services - (ANSWER)Services by an independent CPA that provide financial statement users with (1)
an opinion on whether the financial statements are presented fairly, in all material respects, in
accordance with an applicable financial reporting framework and, in some cases, (2) an opinion on the
effectiveness of ICFR, which enhances the degree of confidence that intended users can place in the
financial statements.
Audit strategy - (ANSWER)The determination of the amount of time spent testing the client's internal
controls and conducting detailed testing of transactions and account balances.
Bank confirmation - (ANSWER)Correspondence sent directly by the auditors to their client's bank
requesting information such as cash held in the bank and details of any loans with the bank and interest
rates charged.
Basic precision (BP) - (ANSWER)The amount of estimated misstatement in the population, even if no
misstatements are detected in the sample.
Benchmarking - (ANSWER)An audit testing strategy that can be used to allow evidence obtained in prior
audit periods to support a conclusion about IT application controls in the current audit period.
Bid rigging - (ANSWER)An employee assists a vendor in winning a competitive bid for a contract;
employee is compensated, usually in the form of a cash payment.
2026/2027 | Complete Auditing Study Guide
Ability of cash flow from operations to cover current debt and dividends - (ANSWER)Measures ability to
cover current debt maturities and dividends with operating cash flow.
Accounting estimate - (ANSWER)An approximation of a monetary amount when a precise means of
measurement is not available.
Accounting records - (ANSWER)Client's records of the initial accounting entry and supporting
documents.
Acid-test (quick) ratio - (ANSWER)Measures ability to meet short-term obligations with liquid assets such
as cash, short-term investments, and receivables.
Advance shipping notice (ASN) - (ANSWER)An electronic acknowledgement of a transaction by a supplier
indicating goods shipped, prices, and other information such as freight costs or taxes.
Adverse interest threat - (ANSWER)The threat that a CPA will not act with objectivity because the CPA's
interests are opposed to the client's interests.
Adverse opinion - (ANSWER)Auditors state the financial statements are not fairly presented due to a
pervasively material departure from the applicable financial reporting framework.
Advocacy threat - (ANSWER)The threat that a CPA will promote a client's interests or position to the
point that his or her objectivity or independence is compromised.
Allowance for sampling risk (ASR) - (ANSWER)A measure of the uncertainty associated with not sampling
the entire population.
Analytical procedures - (ANSWER)Evaluations of financial information through analysis of plausible
relationships among both financial and nonfinancial data; analytical procedures also encompass such
,WGU D215 Auditing Exam Questions and Verified Answers A+ Grade
2026/2027 | Complete Auditing Study Guide
investigation, as is necessary, of identified fluctuations or relationships that are inconsistent with other
relevant information or that differ from expected values by a significant amount.
Appropriate - (ANSWER)Refers to the quality of audit evidence gathered.
Assertions - (ANSWER)Statements or representations, explicit or implied, made by management
regarding the recognition, measurement, presentation, and disclosure of items included in the financial
statements.
Assurance services - (ANSWER)Independent professional services that improve the quality of
information, or its context, for decision makers.
Attestation services - (ANSWER)Services performed when an independent practitioner, or CPA, is
engaged to issue a report on subject matter that is the responsibility of another party.
Attribute sampling - (ANSWER)A sampling technique used to reach a conclusion about a population in
terms of a rate (frequency) of occurrence.
Audit committee - (ANSWER)A committee of the board of directors responsible for oversight of internal
controls, financial reporting and disclosure in the financial statements, regulatory compliance, and the
company's independent auditors.
Audit data analytics (ADA) - (ANSWER)The science and art of discovering and analyzing patterns,
identifying anomalies, and extracting other useful information in data underlying or related to the
subject matter of an audit through analysis, modeling, and visualization for planning and performing the
audit.
Audit evidence - (ANSWER)Information gathered by the auditor that is used when forming an opinion on
the fair presentation of a client's financial statements.
, WGU D215 Auditing Exam Questions and Verified Answers A+ Grade
2026/2027 | Complete Auditing Study Guide
Audit program - (ANSWER)A listing of details of the audit procedures to be used when testing controls,
conducting detailed substantive audit procedures, and completing the audit.
Audit risk - (ANSWER)The risk that an auditor expresses an inappropriate audit opinion when the
financial statements are materially misstated.
Audit sampling - (ANSWER)The selection and evaluation of less than 100% of the population of audit
relevance such that the auditor expects the items selected (the sample) to be representative of the
population and, thus, likely to provide a reasonable basis for conclusions about the population.
Audit services - (ANSWER)Services by an independent CPA that provide financial statement users with (1)
an opinion on whether the financial statements are presented fairly, in all material respects, in
accordance with an applicable financial reporting framework and, in some cases, (2) an opinion on the
effectiveness of ICFR, which enhances the degree of confidence that intended users can place in the
financial statements.
Audit strategy - (ANSWER)The determination of the amount of time spent testing the client's internal
controls and conducting detailed testing of transactions and account balances.
Bank confirmation - (ANSWER)Correspondence sent directly by the auditors to their client's bank
requesting information such as cash held in the bank and details of any loans with the bank and interest
rates charged.
Basic precision (BP) - (ANSWER)The amount of estimated misstatement in the population, even if no
misstatements are detected in the sample.
Benchmarking - (ANSWER)An audit testing strategy that can be used to allow evidence obtained in prior
audit periods to support a conclusion about IT application controls in the current audit period.
Bid rigging - (ANSWER)An employee assists a vendor in winning a competitive bid for a contract;
employee is compensated, usually in the form of a cash payment.
